Page 207 - SAIT Compendium 2016 Volume1

s 24JA INCOME TAX ACT 58 OF 1962 s 24JA
‘sharia arrangement’ means an arrangement that is— (a) open for participation by members of the general
public; and
(b) presented as compliant with sharia law when
the members of the general public are invited to
participate therein;
‘sukuk’ means a sharia arrangement whereby—
(a) the government of the Republic, any public entity that is listed in Schedule 2 to the Public Finance Management Act or a listed company disposes of an interest in an asset to a trust; and
[Para. (a) substituted by s. 42 (1) (a) of Act 43 of 2014 (date of commencement: 1 April 2015) and by s. 45 (1) (c) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the substituted paragraph applies iro years of assessment commencing on or after that date.]
(b) the disposal of the interest in the asset to the trust by the government, the public entity or the listed company contemplated in paragraph (a) is subject to an agreement in terms of which the government, that public entity or that listed company undertakes to reacquire on a future date from that trust the interest in the asset disposed of at a cost equal to the cost paid by the trust to the government, to that public entity or to that listed company to obtain the asset.
[Para. (b) substituted by s. 42 (1) (a) of Act 43 of 2014 (date of commencement: 1 April 2015) and by s. 45
(1) (c) of Taxation Laws Amendment Act, 2015 – date
of commencement: 1 January 2016; the substituted paragraph applies iro years of assessment commencing on or after that date.]
(b)
(c) (d)
the client is deemed to have acquired the asset from the seller—
(i) for consideration equal to the amount paid by the nancier to the seller; and
(ii) at such time as the nancier acquired the asset from the seller by virtue of the transaction between the seller and the nancier;
the murabaha is deemed to be an instrument for the purposes of section 24J;
the difference between the amount of consideration paid for the asset by the nancier to the seller and the consideration payable to the nancier by the client to acquire the asset as contemplated in paragraph (b) (ii) of the de nition of ‘murabaha’ is deemed to be a premium payable or receivable contemplated in paragraph (a) of the de nition of ‘interest’ in section 24J(1); and
Prelex
Wording of paras. (a) and (b) in force until 1 January 2016
(a) the government of the Republic or any public entity
that is listed in Schedule 2 to the Public Finance Management Act disposes of an interest in an asset to a trust; and
(b) the disposal of the interest in the asset to the trust by the government or the public entity contemplated in paragraph (a) is subject to an agreement in terms of which the government or that public entity undertakes to reacquire on a future date from that trust the interest in the asset disposed of at a cost equal to the cost paid by the trust to the government or to that public entity to obtain the asset.
[De nition of ‘sukuk’ added by s. 54 (1) (b) of Act 24 of 2011 – date of commencement: 1 January 2013.]
(2) Any amount received by or accrued to a client in terms of a mudaraba is deemed to be interest as contemplated in paragraph (a) of the de nition of ‘interest’ in section 24J (1).
[Sub-s. (2) substituted by s. 54 (1) (c) of Act 24 of 2011 (date of commencement: 1 January 2013) and by s. 45 (1) (d) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the substituted subsection applies iro years of assessment commencing on or after that date.]
(3) Where any murabaha is entered into between a nancier and a client of that nancier as contemplated in paragraph (a) of the de nition of ‘murabaha’—
(a) the nancier is deemed not to have acquired or
[Para. (d) substituted by s. 55 (1) of Act 22 of 2012 (date of commencement: 1 January 2013) and by s. 45 (1) (e) of Taxation Laws Amendment Act, 2015 – date
of commencement: 1 January 2016; the substituted paragraph applies iro years of assessment commencing on or after that date.]
(e) the amount of consideration paid by the nancier to acquire the asset as contemplated in paragraph (a) of the de nition of ‘murabaha’ is deemed to be an issue price for the purposes of section 24J.
[Para. (e) substituted by s. 55 (1) of Act 22 of 2012 – date of commencement: 1 January 2013.]
[Sub-s. (3) substituted by s. 54 (1) (d) of Act 24 of 2011 – date of commencement: 1 January 2013.]
(4) . . .
[Sub-s. (4) deleted by s. 54 (1) (e) of Act 24 of 2011 – date of commencement: 1 January 2013.]
(5) For the purposes of determining the tax on income of the client in respect of a diminishing musharaka—
(a) where the bank and the client jointly acquire an asset,
the client is deemed to have acquired the bank’s interest in the asset—
(i) for an amount equal to the amount paid by the bank in respect of its interest in the asset; and (ii) at the time that the seller of the asset was
divested of its interest in the asset by virtue of the
transaction between the seller and the bank; or (b) where the bank acquires an interest in an asset from the client, the client is deemed not to have disposed of the interest in the asset or to have acquired that
interest from the bank.
(6) (a) For the purposes of subsection (5), where an
instalment is paid by the client to the bank, a portion of that instalment, the amount of which must be determined in accordance with paragraph (b), is deemed to be interest as de ned in section 24J (1).
(b) The amount contemplated in paragraph (a) must be determined in accordance with the formula—
Prelex
Wording of sub-s. (2) in force until 1 January 2016
(2) Any amount received by or accrued to a client in terms of a mudaraba is deemed to be interest as de ned in section 24J (1).
in which formula— SAIT CompendIum oF TAx LegISLATIon VoLume 1
disposed of the asset under the sharia arrangement;
X =A – B
(i) ‘X’ represents the amount to be determined;
199
Prelex
Wording of para. (d) in force until 1 January 2016 (d) the difference between the amount of consideration
paid for the asset by the nancier to the seller and the consideration payable to the nancier by the client to acquire the asset as contemplated in paragraph (b) (ii) of the de nition of ‘murabaha’ is deemed to be a premium paid for the purposes of section 24J; and
INCOME TAX ACT – SECTIONS